{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Extra_Problems_2

# Extra_Problems_2 - ECON 410.502 Macroeconomic Theory Spring...

This preview shows pages 1–4. Sign up to view the full content.

Page 1 ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma Extra Problems #2 Notice : (1) This set of extra problems contains 25 multiple-choice problems and 4 analytic (short-answer) problems. These problems are not homework and will not be graded. The aim of these problems is to provide you with additional exercises. (2) I will give solutions of the assignment and the “extra-problem” set after the due date.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Page 2 Problem 1~25: Multiple choice problems Please choose your answer and circle the corresponding capital letter (A, B, C, D) 1. When f ( k ) is drawn on a graph with increases in k noted along the horizontal axis, the: A) graph is a straight line. B) slope of the line eventually gets flatter and flatter. C) slope of the line eventually becomes negative. D) slope of the line eventually becomes steeper and steeper. 2. In the Solow growth model of Chapter 7, where s is the saving rate, y is output per worker, and i is investment per worker, consumption per worker ( c ) equals: 3. If capital lasts an average of 25 years, the depreciation rate is ______ percent per year. 4. In the Solow growth model, if investment exceeds depreciation, the capital stock will ______ and output will ______ until the steady state is attained. 5. In the Solow growth model of an economy, with a given production function, depreciation rate, no technological change, and no population growth, a higher saving rate produces a: A) higher MPK in the new steady state. B) higher steady-state growth rate of output per worker. C) higher steady-state growth rate of total output. D) higher steady-state level of output per worker.
Page 3 6. In an economy with no population growth and no technological change, steady-state consumption is at its greatest possible level when the marginal product of:

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 7

Extra_Problems_2 - ECON 410.502 Macroeconomic Theory Spring...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online